CCI Gold Analysis and CCI Trading Signals

Developed by Donald Lambert

Commodity Channel Index measures the variation of a commodity xauusd price from its statistical mean(statistical average).

This indicator is an oscillator which oscillates between high levels & low levels

When the CCI is high it portrays that xauusd price is unusually high when compared to the average.

When the CCI is low it portrays that xauusd price is unusually low compared to the average.

XAUUSD Analysis & How to Generate Signals

Overbought/ Oversold Levels

The CCI typically oscillates between ±100.

Indicator values above +100 indicate an overbought conditions & an impending market correction.

Indicator values below -100 indicate an oversold conditions and an impending market correction

Buy Signal

If the Commodity Channel Index indicator is oversold, levels below -100, then there's a pending market correction.

The oversold levels will remain intact until Commodity Channel Index indicator starts to move above -100.

When xauusd price starts moving above -100 then that is interpreted as a buy.

The Commodity Channel buy signal should be combined with a trend line break signal to confirm the buy.

Buy Trade

Sell Gold Signal

If the Commodity Channel Index is overbought, zones above +100, then there's a pending market correction.

Overbought levels will remain intact until Commodities Channel Index indicator starts to move below +100.

When xauusd price starts moving below +100 then that is a interpreted as sell.

This Commodity Channel sell signal should be combined with a trend line break signal to confirm the sell.

Sell Trade

Divergence Trading

Bullish XAUUSD Trade Divergence Setup

Bullish divergence forms when price is making new lows while the Commodities Channel Index technical indicator is failing to surpass its previous low.

This is a bullish signal because the divergence will be followed by an upward market correction.

Bearish XAUUSD Trade Divergence Setup

Bearish Divergence occurs when price is making new highs while the CCI technical indicator is failing to surpass its previous high.

This is a bearish signal because the divergence will be followed by a downwards market correction.

Technical Analysis in XAUUSD Trading